Where can I find more details on the calculations of values on the OID report?

Explanation of the Detail Report

NOTE: For an explanation of the sections and calculations, the OID limit of R458 820 was used. The value will change every year, however the aplication of the formulas and calculations remain the same.

Actual YTD OID Earning

This shows the Year-to-date plus current period total of the items which have been ticked on the Selection Screens. 

Annualized OID Earning

This shows the annualized OID Earning calculated as:

Actual OID Earning x Periods in the Year

OID Periods in Service from the Employee Information (IS) screen

(OID Periods in Service from the IS screen: Remember the IS screen shows 1 less than the report - thus excludes the current period) 

Adjusted OID Earning

This shows the Adjusted OID Earning for the employee, with the Annual Limit of R458 820 applied in the calculation

Annualized OID Earning  (with the Annual limit applied) X OID Periods in Service

Periods in the Year

Explanation of the Summary section of the OID Report

On the W.As.8 Form the employees that have OID Earnings up to and including R458 820 p.a. and those employees with OID Earnings above this amount must be shown separately. Directors in each of these brackets must be shown separately from “ordinary” employees. 

• There is 1 Director in the Company and his OID earnings are above the OID limit.
• There are 14.08 Normal Employees in the Company whose OID earnings fall within the OID limit.

The employees are counted using the number of OID periods in the year that the employee has been in service as a fraction of the total number of OID periods so far in the year (see explanation below at point 5.1). The total amount of R962 027.00 is the total of the adjusted OID Earnings of the 14.08 Normal Employees. These employees’ adjusted OID Earnings are all below the limit and therefore print on the left side of the report.

• There are no Normal Employees in the Company whose OID earnings are more than the OID limit. If there were, the OID limit would have been used as the OID earnings.

NOTE: Remember that the current OID limit amount in the example of R458 520 is for the full tax year of 12 months

Calculation of Average Number of Employees

The Average Number of employees in each of these groups is calculated as:

Actual Number of periods worked by employees in this group x Number of Employees in this group

Total number of periods that could have been worked by employees in this group

As an example, we will look at the employees with earnings that fell within the OID limit. 

14 Employees worked 12 periods – 14 x 12 = 168

1 Employee worked 1 period

Actual number of periods worked: 168 + 1 = 169

There are 15 employees that could have worked 12 periods each = 180 periods

169 x 15

180

= 14.08

NOTE: Every employee who completed a full OID year will count as 1. Every employee who completed a portion of a full year will be calculated as OID periods / periods in OID year.